Ann: Pause in Trading, page-83

They are stating that RFF inflated leases with 3rd parties in order to increase asset valuations to a) raise more funds to enable them to b) typhoon off funds through RFM.

There are two big issues with this
1) The leases are with 3rd parties (possibly Select Harvests & Treasury Wine).
How do you falsify income with lease agreements in place that are audited?
Doesn't seem very likely.
Did they just look at rental expense in one set of books & rental income in another & jump to conclusions?

2) The assets are revalued by third parties every 2 years which are then audited.
Lease agreements that generate the income are based on the undelyimg rental market values not the asset values. They don't just internally revalue up the assets then increase the rent based on that.

The suggestion they've somehow doubled the value of the assets on their books when they revalued by a third party is ridiculous (unless the valuers are also in on the fraud as well as the tenants!).
Especially when they are suggesting that $36m of the $51m of rent is fabricated.

So the conclusion I come to is that this is either the biggest fraud on the ASX or it's complete BS.